6-8-2025 – Huynh Tran Quang Duy, founder of defunct lending platform MyConstant, has agreed to pay over $10 million to settle SEC charges alleging he defrauded customers by secretly investing their funds in TerraUSD before the stablecoin collapsed.
The SEC accused Duy of misleading customers by promising their deposits would fund a loan matching service backed by crypto that would generate 10% returns. Instead, regulators say he diverted $11.9 million in customer funds to purchase TerraUSD tokens, which lost nearly all their value when the Terra ecosystem collapsed in May 2022. The agency said customers were never informed their money would be used to speculate on the algorithmic stablecoin.
MyConstant operated as a peer-to-peer lending platform that allowed users to deposit funds in exchange for promised returns. The platform shut down following the Terra collapse, leaving customers unable to recover their investments. The settlement includes disgorgement, interest, and penalties, though the exact breakdown was not disclosed.
The case adds to the growing list of enforcement actions stemming from the $40 billion Terra ecosystem collapse, as regulators continue pursuing firms that misled investors about exposure to the failed stablecoin.
